Tesla Halts Model 3 Deliveries in Australia Over Compliance Issue: Report

Tesla Inc. TSLA has reportedly halted deliveries of its Model 3 in Australia due to a breach of Australian motor-vehicle regulations.

Customers were advised that deliveries will be paused indefinitely due to a “technical compliance matter that we are working closely with the relevant authorities to resolve,” Drive reported. 

Tesla communicated to its Australian customers that the delivery halt is effective from January 17, 2024.

Tesla has yet to advise what will occur to updated Model 3 electric cars delivered to customers so far, and if they will be recalled to resolve the compliance issue, as per the report. 

Drive reported last week that Australian authorities were investigating the updated Model 3 for removing access to a child-seat anchor point needed to pass motor-vehicle compliance rules.

This oversight echoes a similar compliance issue faced by BYD Company’s BYDDY Atto 3 in 2022, which led to delivery pauses and recalls, reported CarExpert.

“The Department of Infrastructure, Transport, Regional Development, Communications and the Arts is aware of concerns regarding the child restraint anchorage points in the 2024 Tesla Model 3 and is looking into this matter,” as per CarExpert, which cited a Department of Infrastructure, Transport, Regional Development, Communications and the Arts spokesperson saying earlier this month.

Tesla may consider reclassifying the Model 3 as a four-seater by removing the rear middle seat belt, as per the report. 

Last week, the Australian Government set new standards bolstering safety requirements for new electric and hydrogen-fuelled vehicles in Australia.

The safety-boosting standards will apply to electric and hydrogen-fuelled vehicles across most road vehicle types, including cars, SUVs and buses, as well as utility and commercial vehicles.

Price Action: TSLA shares are trading lower by 2.47% at $214.49 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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